Let’s face it. No one wants to file for bankruptcy. Even though many times bankruptcy is the solution we need, we put it off until one day we get hit with a wage garnishment, a debt collection lawsuit, a bank levy, or even foreclosure.
Once a creditor takes things up a notch by trying to garnish your wages or file a lawsuit against you there is little time to act. In the case of a wage garnishment in Arizona you will only have ten (10) days to object to the garnishment and even then in most cases objecting to the wage garnishment does little to delay or stop the process.
If you need the garnishment stopped and need it stopped now the best way to get that to happen is by filing a chapter 7 bankruptcy. The filing of a bankruptcy usually takes a fair amount of time. For most of my bankruptcy clients it takes about thirty (30) days from they time they provide me with all of their documents until we actually file the case with the bankruptcy court.
However when there is something pressing like a wage garnishment or a home foreclosure the bankruptcy court allows us to file what is known as an “emergency” bankruptcy. The typical bankruptcy filing is about a 45-60 page document with information on you and your financial condition.
With an emergency bankruptcy filing we are only required to file the first few pages that contain information on your name, address, social security number, and some other identifying information. The remainder of the bankruptcy schedules and statements must still be filed but we have an additional fourteen (14) days to do so.
But the great thing about the emergency bankruptcy filing is that by filing those first few pages your case is considered “filed” and the judge in your case immediately enters and Order that stops all collection efforts against you – including wage garnishment.
So, if received notice from your employer that they are required to start taking 25% of your pay in the form of a wage garnishment, this can be stopped before it even starts through an emergency bankruptcy filing.
One thing you need to know upfront; even though the bankruptcy court is not requiring you to file all of the paperwork to get your case started, they still require that you pay all of your legal fee and filing fee before the case is filed.